Tax Avoidance Scheme Defence — If You're in One, Here's How to Limit the Damage

If you invested in a tax avoidance scheme — marketed by a promoter, backed by counsel's opinion, and apparently lawful when you entered into it — and HMRC has since challenged it, you are facing one of the most stressful situations in tax law. The combination of the Accelerated Payments Notice regime, Follower Notices, and HMRC's sustained litigation programme against mass-marketed schemes means that many investors who entered schemes in good faith are now facing demands for payment of tax they believed was legitimately saved, plus interest and penalties. I advise individuals and businesses in exactly this situation. The first step in any scheme challenge is to understand whether the legal challenge HMRC is making has merit and what your actual exposure is. Many schemes were badly designed or implemented in ways that give HMRC legitimate grounds to challenge them. Others were technically sound but have since been defeated in litigation involving other investors using the same arrangement, and HMRC is using Follower Notices to demand settlement from remaining investors. The legal and commercial assessment of your position must be done carefully before any response to HMRC. I advise on challenging Accelerated Payment Notices, responding to Follower Notices, and negotiating Time to Pay arrangements where the tax demand is ultimately unavoidable. I also advise on claims against the scheme promoter or their professional advisers where the scheme was mis-sold or the advice given was negligent. In some cases, recovering losses from the promoter or professional advisers is the most effective financial outcome available to investors who followed professional advice in good faith. How It Works 1. Scheme documentation and HMRC challenge reviewed 2. APN or Follower Notice validity assessed 3. Legal challenge or settlement recommendation made 4. Representation in HMRC correspondence and Tribunal if required 5. Promoter or adviser negligence claim assessed in parallel What You Get - APN and Follower Notice challenge advice - Time to Pay negotiation with HMRC - Tribunal representation if settlement not appropriate - Promoter or adviser professional negligence claim assessment FAQ Q: Do I have to pay an Accelerated Payment Notice immediately? A: You have 90 days to pay, or to apply for postponement or judicially review the APN. I advise on whether a challenge is viable before the payment deadline. Q: What is a Follower Notice? A: A Follower Notice tells you that HMRC believes a court has already defeated the same arrangement and that you should settle your case on the same terms. Non-compliance attracts a 50% penalty of the disputed tax. Q: Can I claim against the scheme promoter? A: If the scheme was mis-sold, or if the promoter's or adviser's advice was negligent, a professional negligence or misrepresentation claim may be available. I assess this as part of every scheme review.